Kern Community College District Adopted Budget FY 200304

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Kern Community College DistrictAdopted Budget FY
2003-04
October 2, 2003
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Kern Community College DistrictAdopted Budget FY
2003-04

• The 2003-04 Adopted Budget is primarily based
  upon the State budget adopted on August 2, 2003.
  
• Compared to the May revised budget KCCD has seen
  significant improvement in its projected income
  from the State.
• The enacted budget increased the General Fund
  budget over the May revised budget by 4.2
  million.

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Kern Community College DistrictAdopted Budget FY
2003-04

• Unrestricted net income increased by 3.3 million
  and restricted net income increased by 880,000.
  The adopted budget reflects these increases in
  income.
• It is clear the Adopted State budget is more of a
  political solution to potentially influence the
  outcome of the Governors recall election.
• The State Chancellors Office is forecasting a
  potential 5 reduction in January,2004.

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Kern Community College DistrictAdopted Budget FY
2003-04

• Adopted budget reveals the States continuing
  efforts to close a 38.2 billion dollar budget
  deficit. The KCCD budget reflects the impact of
  these changes.
• In 2002/03 the legislature enacted mid-year
  budget reductions.
• KCCD General Fund saw a reduction of 5.1 million
  in income.

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Kern Community College DistrictAdopted Budget FY
2003-04

• Unrestricted portion saw a 1.8 million dollar
  mid-year decrease and State categorical programs
  were reduced 3.5 million.
• Fiscal year 2003/04 the Adopted Budget reflects
  4.2 million in General Fund income reductions
  for KCCD from the previous years budget.
• The unrestricted portion of the budget saw a 1.1
  million dollar decrease and State categorical
  programs were reduced 3.1 million.

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Kern Community College DistrictAdopted Budget FY
2003-04

• Magnitude of these changes will have an adverse
  effect on students attending our community
  colleges.
• District continues to be impacted by significant
  cost increases
• Health and Welfare Costs (1.6 million to
  unrestricted fund impact)
• PERS retirement contributions (1.3 million
  unrestricted fund impact)

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Kern Community College DistrictAdopted Budget FY
2003-04

• Salaries (2.9 million unrestricted fund impact)
• Workers Compensation rates (507k unrestricted
  fund impact)
• Major reductions have been made to base
  expenditures for both labor and non-labor costs
  in order to balance the Districts budget.

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Kern Community College DistrictAdopted Budget FY
2003-04

• The following are key budget assumptions, which
  have been incorporated into the KCCD Adopted
  budget
• Allocation model based on 12 target reduction of
  2002-03 expenditure base
• COLA funded at 0
• Growth (access) State funded at 1.5. KCCD is
  allowed a maximum of 4.42 growth, and is
  currently projected to be funded at 44 for a
  potential increase of 1.3 million
• Base Apportionment (excluding growth) is
  increased by 202,722 from the 2002-03 adopted
  budget.

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Kern Community College DistrictAdopted Budget FY
2003-04

• Enrollment Fees are increased to 18/unit
• Part-time Adjunct Faculty support Statewide
  funded at 51 million. KCCD projected to receive
  approximately 777,441. Reflects a 12.95
  reduction over prior year.
• Partnership for Excellence funding Statewide
  funded at 225 million. KCCD projected to
  receive 3.5 million. Reflects a 25 reduction
  over prior year.
• Lottery proceeds are estimated at 2.3 million
  based on projected funding of 125 per FTES.

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Kern Community College DistrictAdopted Budget FY
2003-04

• Recognizing potential for mid-year reduction,
  zero funding for onetime (block grant) or ongoing
  instructional equipment, materials and scheduled
  maintenance is included in KCCDs Adopted Budget.
• Basic Skills Funding Statewide funded at 40.6
  million. KCCD projected to receive approximately
  569,734. Reflects a 43.14 reduction over prior
  year.
• Increased projected contractual salary increases
  for faculty (7.33).

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Kern Community College DistrictAdopted Budget FY
2003-04

• Un-audited restricted beginning fund balance for
  2003-04 is projected to be 3.4 million.
• Unrestricted campus carryover is projected to be
  2.5 million.
• Projected unallocated 2003/04 Reserves Ending
  Balance at 1.9 million.
• Increased health welfare costs (health, dental,
  vision, EAP, etc.) of 15
• PERS employer contribution rate increased from
  2.894 to 10.42
• Increased Workmen Compensation rates of 2.9484
  per 100 of salary from a rate of 1.9383 per
  100 of salary.

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Kern Community College DistrictAdopted Budget FY
2003-04

• Forest reserve income increased over 2002-03
  levels by 14,000
• Potash revenues remain at the same levels as
  projected in 2002-03
• Restricted programs, grants and categorical funds
  are projected based upon best-known information.
  Specific allocations are traditionally received
  in the months of September through October.
  These changes are incorporated into the budget by
  late November and are reflected in the 311Q
  reports made each quarter to the Board to
  Trustees.

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Kern Community College DistrictAdopted Budget FY
2003-04
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Kern Community College DistrictAdopted Budget FY
2003-04
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Kern Community College DistrictAdopted Budget FY
2003-04
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Kern Community College DistrictAdopted Budget FY
2003-04
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Kern Community College DistrictAdopted Budget FY
2003-04
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Kern Community College DistrictAdopted Budget FY
2003-04
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Kern Community College DistrictAdopted Budget FY
2003-04
Learning Services Center FY 2003-04
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Kern Community College DistrictAdopted Budget FY
2003-04

• COMPLIANCE TESTS
• 50 Law Calculation 49.65
• (Shortfall of 260,604)
• Projected Full Time Faculty Employees
• Fall 2003 379.6
• Full Time Faculty Obligation - 377.80
• KCCD granted automatic deferral of incremental
  increase for Fall 2003 FTFO (383.3 FTFO). KCCD
  must still meet Fall 2002 target.

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Kern Community College DistrictAdopted Budget FY
2003-04

• What Next..?
• Re-evaluate/redistribute adopted budget funding
  to meet 50 law requirements.
• 2. Develop plans to meet projected 5 mid-year
  reduction and/or KCCD projected shortfall of 4.5
  million for 2004-2005.

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Kern Community College DistrictAdopted Budget FY
2003-04
Two Year Summary of Key Budget
Adjustments to Maintain
Overall District Wide Budget Balance
Unrestricted Funds
BC
CC
PC
LSC
District-Wide
Total
2002-03 Mid year Budget Reductions
Capital Outlay/Sch. Maint Match Transfer
(616,155)


(616,155)


Capital Outlay Freeze (Note1)
(686,591)


(29,528)


(38,428)


(351,043)


-


(1,105,592)


Health Welfare Benefit Savings
(59,478)


(18,504)


(16,069)


(18,370)


-


(112,420)


Sub-total 2002-03 Adjustments
(746,069)


(48,032)


(54,497)


(369,413)


(616,155)


(1,834,167)


2002-03 Carryover Results
Carryover Results
2,127,827


385,121


(543,155)


470,748


959,746


3,400,287


LSC/KCCD Shift to cover Porterville Shortfall
543,155


(470,748)


(72,407)


Net Carryover
2,127,827


385,121


-


-


887,339


3,400,287


2003-04 Tentative Budget Allocation of Residual
Funds
Tentative Budget Residual Allocation if done
utilizing Model
394,506


117,804


124,778


-


-


637,088


Distribution contained in Adopted Budget
177,064


177,064


177,064


105,896


637,088


Difference
(217,442)


59,260


52,286


105,896


-


-


Note1 Funds may be backfilled from Measure G
funding